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Solution Mortgages news on bad credit remortgages, poor credit remortgages and for people with arrears & ccj’s. Remortgage news with regards to the adverse credit market and people with sub prime credit.

Friday, February 1, 2008

Call for Code of Conduct in sale & rent back sector

There have been calls for providers of sale and rent-back schemes to subscribe to a Code of Conduct to improve the poor reputation that the sector currently has.

Criticisms of the sector range from, providers not using independent valuations for properties, to deals done without rental guarantees in place.

Sale and rent-back schemes can be an option for borrowrs who are facing repossession due to mortgage arrears but are only really viable if they are offered a fair deal by the provider. This should include a rental guarantee and an independent valuation of the property.

The Financial Services Authority (FSA) has been touted as a possibble regulator of the industry as the products are very similar to equility release schemes and Islamic mortgages, but little has been mentioned recentley.

It is probably safe to assume that the FSA is unlikely to regulate the sector in the near future but that does not mean that a Code of Conduct should be produced and adhered to in the meantime.

If you have any questions on this article or others like it, please feel free to contact Solution Mortgages on 0845 123 1260, or visit us at http://www.solution-mortgages.co.uk/